Arbeitspapier
Gravity chains: estimating bilateral trade flows when parts and components trade is important
Trade is measured on a gross sales basis while GDP is measured on a net sales basis, i.e. value added. The rapid internationalisation of production in the last two decades has meant that gross trade flows are increasingly unrepresentative of value added flows. This fact has important implications for the estimation of the gravity equation. We present empirical evidence that the standard gravity equation performs poorly by some measures when it is applied to bilateral flows where parts and components trade is important. We also provide a simple theoretical foundation for a modified gravity equation that is suited to explaining trade where international supply chains are important.
- Sprache
-
Englisch
- Erschienen in
-
Series: ECB Working Paper ; No. 1401
- Klassifikation
-
Wirtschaft
Global Outlook
Trade: General
- Thema
-
bilateral flows
gravity
parts and components trade
Value chains
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Baldwin, Richard
Taglioni, Daria
- Ereignis
-
Veröffentlichung
- (wer)
-
European Central Bank (ECB)
- (wo)
-
Frankfurt a. M.
- (wann)
-
2011
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Baldwin, Richard
- Taglioni, Daria
- European Central Bank (ECB)
Entstanden
- 2011
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